Confusion rife over HIPs |
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14th May 2010
Grant Shapps was duly appointed Housing Minister as predicted, and in our opinion is a good choice. Nevertheless, we need some direction and clarity over the issue of Home Information Packs. Both Conservatives and Liberal Democrats pledged to abolish them in their respective manifestos. Then we saw section 11 of the Coalition Agreement which further confirmed they were to be abolished whilst EPC's would be retained. Good news indeed.
The problem is that despite the much maligned and unnecessary HIPs having their days officially numbered, we don't know what that number actually is. Already we are aware of agents marketing properties without HIPs. Further, we have received instructions from vendors insisting we market their property without a HIP. This remains illegal and, if discovered, will bring down the wrath of Trading Standards upon anyone who ignores the Law.
There is talk that it will take months to repeal primary legislation, however this is untrue as the House Of Lords insisted that the 2004 Housing Act contained a sunset clause so that HIPs could be suspended by order of the Minister of State without the need to place the matter before parliament. This exists as section 162 and means that the Minister could suspend HIPs overnight.
The issue is that in a press release by the Department of Communities and Local Government, they make reference to review, which suggests the dreaded consultation. Everyone in the Industry agrees HIPs don't serve the purpose for which they were intended. There are many jobs dependent upon this ill conceived cottage industry and we all feel for anyone who is affected. The agents who were earning commission for the provisions of HIPs will obviously be concerned as each instruction can earn them £100 + regardless of whether they find a buyer or not.
Bushells has today written to the Minister, Grant Shapps, and the DCLG urging them to bring this confusion to an end by announcing swift and decisive action in terms of what will happen and when. Failure to do so will hand agents who flout the Law an unfair commercial advantage and may adversely affect the clients who rely upon their advice. Remember, until a HIP is in place, you cant exchange contracts and the Law still requires it to be available before marketing. Even once HIPs are scrapped, you will still require an EPC from day one.
